Webjet Limited

WEB Details
· Partnership with Thomas Cook: Webjet Limited (ASX: WEB) stock fell 11.5% on November 02, 2016 due to volatile market sentiments owing to concerns over weak domestic demand. There may be an impact from profit booking as well. On the other side, WEB had signed strategic sourcing partnership with Thomas Cook which would see Webjet’s European online accommodation business servicing the wholesale market and addressing huge volume from Thomas Cook’s complementary hotel business. WEB stock was added in S&P/ASX 200 Index from September 16, 2016 after the close of the market. On the other hand, WEB stock has risen 84.05% in the last six months as on November 01, 2016, placing them at a low dividend yield and a high P/E.

· Recommendation: We believe investors should book profit at this level as we give an “Expensive” recommendation on the stock at the current price of $ 9.63

Nextdc Ltd

NXT Details
· Funds Raising: Nextdc Ltd (ASX: NXT) stock fell 7.4% on November 02, 2016 which may be owing to profit booking to some extent. On the other hand, NXT has completed the $150 million placement and entitlement offer while raising about $45 million from the retail entitlement offer. The capital is being raised to fund the second Sydney data centre. Moreover, in FY 16 the revenue has increased 52% to $92.8 million, beating the guidance of $85 million to $90 million. EBITDA has increased 247% to $27.7 million, meeting the top end of its guidance range of $25 million to $28 million. NXT has reported a statutory net profit of $1.8 million, as compared to a net loss of $10.3 million in FY 15. In addition, NXT now expects the revenue to be in the range of $115 million to $122 million, up 24% to 31% on FY 16. The EBITDA is expected to be in the range of $46 million to $50 million, an increase of 66% to 80% on FY 16. The group will hold its AGM on November 24, 2016. Meanwhile, NXT stock has risen 26.1% in the last six months as on November 01, 2016.

· Recommendation: We give a “Hold” recommendation on the stock at the current price of $ 3.38
 

FY16 Financial Performance (Source: Company Reports)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.